08-10-2022, 04:05 PM
(08-10-2022, 01:17 PM)fredtoast Wrote: The Browns family has collected hundreds of millions of dollars in salary from the Bengals over the years.
Plus they own an asset worth over $2 BILLION dollars.
They could easily come up with a couple of hundred million dollars to invest in bonds and fund an escrow account. It is not like they have to BUY something and lose the use of the money. They can invest the money and receive a return while it is in the escrow account.
No large business... or small one, for that matter, should borrow personal funds, monies already earned, future monies projected to be earned, or assets to pay for liabilities (players and salaries are liabilities to the Bengals). That is a recipe for disaster and losing your ass as well as a sign of an unhealthy business. Let the Brown family make changes to the Bengals revenue streams to pay for this stuff. That is how good businesses operate. They can easily do so and make the Bengals as a company pay for these incoming expenses rather than go into a personal checking account, stock portfolio, etc.
Elon Musk is about to lose $1B because he thought it was fine to borrow against personal assets to buy another tech business (a liability).
I'm not saying businesses don't do it all the time... they do... but typically those moves are done with corporate money and with protection. When individuals do it? Not good.
Now, borrowing personal money or against already owned assets for a small business owner or corporation (assets or stock) to purchase more hard ASSETS? Smart and done every day.
